Nortel Completes Sales of GSM/GSM-R Business
Apr 1, 2010 internet, phones, telecom
Nortel Networks Corporation announced that it, its dealer operating subsidiary Nortel Networks Limited (NNL), and certain of its other subsidiaries, including Nortel Networks Inc., Nortel Networks UK Limited (in giving medication), and Nortel Networks SA (NNSA) wealthy person completed the sale of substantially all of the global assets of Nortel’s GSM/GSM-R byplay. Telefonaktiebolaget LM Ericsson (”Ericsson”) and Kapsch CarrierCom AG (”Kapsch”) have purchased the businesses for US$103 million in immediate payment, subject to working capital adjustments.
Ericsson has purchased assets relating to the North American GSM byplay and Kapsch has purchased assets relating to the EMEA and Taiwan GSM businesses. Kapsch has also acquired the global assets of the GSM-R byplay.
“Today, we’ve reached another successful milestone in the divestiture of our businesses,” said Gospel According to John Doolittle, Chief Financial Officer, Nortel. “We compliments our transferring employees well, knowing that they are pickings their considerable expertise to Ericsson and Kapsch.”
As previously announced, Nortel does not expect that the Company’s commons shareholders or the NNL preferred shareholders volition receive any value from the creditor tribute legal proceeding and expects that the legal proceeding volition result in the cancellation of these equity interests.
About Nortel
For more information, sojourn Nortel on the Web at www.nortel.com . For the latest Nortel newsworthiness, visit www.nortel.com/newsworthiness .
Certain statements in this press freeing whitethorn contain speech such as “could”, “expects”, “whitethorn”, “should”, “will”, “anticipates”, “believes”, “intends”, “estimates”, “targets”, “plans”, “envisions”, “seeks” and other similar language and ar considered forward-looking statements or information under applicable securities laws. These statements are based on Nortel’s stream expectations, estimates, forecasts and projections about the operating environment, economies and markets in which Nortel operates. These statements are depicted object to important assumptions, risks and uncertainties that are difficult to predict, and the actual resultant may be materially different. Nortel’s assumptions, although considered reasonable by Nortel at the engagement of this pressing freeing, whitethorn prove to be inaccurate and consequently Nortel’s actual results could differ materially from the expectations exercise set out herein.
Actual results or events could differ materially from those contemplated in forward-looking at statements as a resultant role of the chase: (i) risks and uncertainties relating to the Creditor Protection Proceedings including: (a) risks associated with Nortel’s power to: stabilize the byplay and maximize the economic value of Nortel’s businesses; obtain required approvals and successfully consummate pending and future divestitures; power to satisfy transition services agreement obligations in connection with divestiture of trading operations; successfully conclude ongoing discussions for the sale of Nortel’s other assets or businesses; develop, obtain required approvals for, and implement a court approved plan; resolve ongoing issues with creditors and other third base parties whose interests whitethorn differ from Nortel’s; generate cash from trading operations and maintain adequate cash on hand in each of its jurisdictions to fund operations within the legal power during the Creditor Protection Proceedings; access the EDC Facility precondition the current discretionary nature of the installation, or arrange for choice funding; if necessary, arrange for sufficient debtor-in-possession or other funding; continue to wealthy person cash direction arrangements and obtain any further required approvals from the Canadian River Monitor, the U.K. Administrators, the French Administrator, the Israeli Administrators, the U.S. Creditors’ Committee, or other third parties; heave capital to satisfy claims, including Nortel’s power to sell assets to satisfy claims against Nortel;
maintain R&D investments; realize full or funfair value for any assets or byplay that ar divested; utilize mesh operating loss carryforwards and certain other tax attributes in the future; avoid the substantive integration of NNI’s assets and liabilities with those of I or more other U.S. Debtors; attract and retain customers or avoid simplification in, or holdup or suspension of, client orders as a result of the uncertainness caused by the Creditor Protection Proceedings; maintain marketplace share, as competitors move to capitalize on client concerns; operate Nortel’s business effectively under the new organizational structure, and in consultation with the Canadian River Monitor, and the U.S. Creditors’ Committee and employment effectively with the U.K. Administrators, French people Administrator and Israeli Administrators in their respective administration of the EMEA businesses depicted object to the Creditor Protection Proceedings; continue as a going headache; actively and adequately communicate on and respond to events, media and rumors associated with the Creditor Protection Proceedings that could adversely affect Nortel’s relationships with customers, suppliers, partners and employees;
retain and incentivize headstone employees and attract new employees as may be needed; retain, or if necessary, replace major suppliers on acceptable damage and avoid disruptions in Nortel’s supply strand; maintain current relationships with reseller partners, reefer venture partners and strategic alliance partners; obtain homage orders or approvals with respect to motions filed from metre to time; firmness claims made against Nortel in connection with the Creditor Protection Proceedings for amounts not exceeding Nortel’s recorded liabilities depicted object to via media; prevent third base parties from obtaining homage orders or approvals that are contrary to Nortel’s interests; cull, repudiate or terminate contracts; and (b) risks and uncertainties associated with: limitations on actions against any Debtor during the Creditor Protection Proceedings; the values, if any, that volition be prescribed pursuant to any court approved architectural plan to outstanding Nortel securities and, in particular, that Nortel does not expect that any value volition be prescribed to the NNC common shares or the NNL preferred shares in any such architectural plan; the delisting of NNC commons shares from the NYSE; and the delisting of NNC commons shares and NNL preferred shares from the TSX;
and (ii) risks and uncertainties relating to Nortel’s byplay including: the sustained economic downswing and volatile market conditions and resulting negative encroachment on Nortel’s business, results of trading operations and financial place and its ability to accurately prognosis its results and cash position; timid cap spending by customers as a resultant role of factors including current economic uncertainties; fluctuations in foreign up-to-dateness exchange rates; any requirement to shuffling larger contributions to defined benefit plans in the future; a high level of debt, arduous or restrictive terms and conditions related to accessing certain sources of financing; the adequacy of workforce and cost simplification initiatives; any negative developments associated with Nortel’s suppliers and contract bridge manufacturers including Nortel’s trust on certain suppliers for key optical networking solutions components and on I provider for most of its manufacturing and designing functions;
potential difference penalties, amends or cancelled customer contracts from failure to sports meeting contractual obligations including obstetrical delivery and installment deadlines and any defects or errors in Nortel’s stream or planned products; significant rivalry, competitive pricing practices, manufacture integration, rapidly changing technologies, evolving industry standards, frequent new product introductions and shortstop product life cycles, and other trends and manufacture characteristics affecting the telecommunications manufacture; any material, adverse affects on Nortel’s carrying out if its expectations regarding market demand for particular products prove to be damage; potential higher operational and financial risks associated with Nortel’s international operations; a failure to protect Nortel’s intellect property rights; any adverse legal judgments, fines, penalties or settlements related to any significant pending or future judicial proceeding actions; failure to maintain integrity of Nortel’s entropy systems; changes in regulating of the Net or other regulatory changes; and Nortel’s potential difference unfitness to maintain an effective danger direction strategy.
For additional information with obedience to certain of these and other factors, see Nortel’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other securities filings with the Securities and Exchange Commission. Unless otherwise required by applicable securities laws, Nortel disclaims any intention or responsibility to update or revise any forward-looking at statements, whether as a resultant role of new information, future tense events or otherwise.
(1) Nortel, the Nortel logotype and the Globemark ar trademarks of Nortel Networks
Tags: administration, eric, ericy, internet, manufacturing, sales, telecom, telecommunication services
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